Pershing, which recently raised a $2 billion fund to exclusively invest in Target, now holds a 9.97 percent stake in the discount retail chain, up from approximately 9.6 percent in July.

Pershing said it has also invested in Target swaps and options, which combined with the stock gives the fund an economic exposure equal to a 12.6 percent stake in the retailer.

According to the filing, Pershing said it has met with Target's management and may meet them again to discuss the company's strategy, business, assets, operations, capital structure or its financial condition.

Pershing said it has engaged financial advisers and may contact other Target shareholders.